Himax Technologies, Inc. reports 1,238% EBITDA growth in 2020 and 8.3 pp EBITDA Margin growth from 0.91% to 9.2%
02/04/2021 • About Himax Technologies, Inc. (
$HIMX) • By InTwits
Himax Technologies, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 9.2% in FY2020, 0.9% in FY2019, 3.3% in FY2018, 3.6% in FY2017, 9.1% in FY2016
- Himax Technologies, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's in pair with industry average of 7.3%
- CAPEX is quite volatile: $26m in FY2020, $100m in FY2019, $76m in FY2018, $40m in FY2017, $8m in FY2016
- The company has business model with low profitability: ROIC is 9.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Himax Technologies, Inc.'s Revenue jumped on 32.1%. Revenue growth showed acceleration in FY20Q4 - it increased 57.6% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 83.6 pp from 7.5% to -76.1% in 2020. During the last 5 years EBITDA Margin bottomed in FY2019 at 0.91%.
Gross Margin increased on 4.4 pp from 20.5% to 24.9% in FY2020. SG&A as a % of Revenue decreased slightly on 1.6 pp from 6.1% to 4.6% in FY2020.
Net Income margin increased on 7.3 pp from -2.0% to 5.3% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2019 at -2.0%.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased on 2.9 pp from 5.8% in FY2017 to 2.9% in FY2020. It's average level of CAPEX/Revenue for the last three years was 9.4%. During the last 5 years CAPEX as a % of Revenue topped in FY2019 at 14.9%.
Return on investment
The company operates at low ROIC (9.0%) and ROE (10.3%). ROIC surged on 11.8 pp from -2.9% to 9.0% in FY2020. ROE jumped on 13.4 pp from -3.1% to 10.3% in FY2020. During FY2016-FY2020 ROIC bottomed in FY2019 at -2.9%. During FY2016-FY2020 ROE bottomed in FY2019 at -3.1%.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 2.0x Debt / EBITDA. Debt dropped on 28.0% while cash surged on 83.0%.
Himax Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (168.1%).
Valuation and dividends
The company's trades at EV/EBITDA 31.9x and P/E 55.7x.
Financial and operational results
Himax Technologies, Inc. ($HIMX) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 802.9 | 685.2 | 723.6 | 671.8 | 887.3 | 32.1% |
| Gross Profit | 194.3 | 167.0 | 168.9 | 137.9 | 220.8 | 60.1% |
| SG&A | 38.6 | 41.0 | 42.2 | 41.3 | 40.6 | -1.7% |
| EBITDA | 73.0 | 24.8 | 23.7 | 6.1 | 81.5 | 1,238.2% |
| EBIT | | | | -18.3 | | |
| Net Income | 50.9 | 28.0 | 8.6 | -13.6 | 47.1 | |
| Stock Based Compensation | | | | 0.5 | | |
Balance Sheet
|
|---|
| Cash | 184.5 | 138.0 | 106.4 | 101.1 | 184.9 | 83.0% |
| Accounts Receivable | | | | 164.9 | | |
| Inventory | | | | 143.8 | | |
| Accounts Payable | | | | 114.3 | | |
| Short Term Debt | 138.0 | 147.0 | 184.0 | 222.8 | 110.0 | -50.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 2.8 | 52.5 | 1,783.1% |
Cash flow
|
|---|
| Capex | 7.9 | 39.8 | 75.9 | 100.4 | 25.5 | -74.6% |
Ratios
|
|---|
| Revenue growth | 16.1% | -14.7% | 5.6% | -7.2% | 32.1% | |
| EBITDA growth | 62.8% | -66.0% | -4.5% | -74.3% | 1,238.2% | |
|
|---|
| Gross Margin | 24.2% | 24.4% | 23.3% | 20.5% | 24.9% | 4.4% |
| EBITDA Margin | 9.1% | 3.6% | 3.3% | 0.9% | 9.2% | 8.3% |
| EBIT Margin | | | | -2.7% | |
| SG&A, % of revenue | 4.8% | 6.0% | 5.8% | 6.1% | 4.6% | -1.6% |
| SBC, % of revenue | | | | 0.1% | |
| Net Income Margin | 6.3% | 4.1% | 1.2% | -2.0% | 5.3% | 7.3% |
| CAPEX, % of revenue | 1.0% | 5.8% | 10.5% | 14.9% | 2.9% | -12.1% |
|
|---|
| ROIC | 9.4% | 1.3% | 0.6% | -2.9% | 9.0% | 11.8% |
| ROE | 11.2% | 6.1% | 1.9% | -3.1% | 10.3% | 13.4% |
| Net Debt/EBITDA | -0.6x | 0.4x | 3.3x | 20.4x | -0.3x | -20.7x |
People
|
|---|
| Employees | | | | 1,975 | | |
| Revenue/Employee, th. $ | | | | 340 | | |
Himax Technologies, Inc. ($HIMX) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 185 | 187 | 240 | 276 | | 13.2% | 10.6% | 46.3% | 57.6% |
| EBITDA | 10 | 8 | 15 | 49 | | 246.7% | - | - | 872.4% |
| Net Income | 3 | 1 | 8 | 34 | | - | - | - | 3,300.6% |
Balance Sheet
|
|---|
| Cash | 116 | 96 | 132 | 185 | | 19.3% | 3.4% | 12.7% | 83.1% |
| Short Term Debt | 232 | 222 | 110 | 110 | | 13.7% | -7.7% | -56.9% | -50.7% |
| Long Term Debt | 0 | 0 | 54 | 53 | | - | - | - | 1,650.0% |
Ratios
|
|---|
| Gross Margin | 22.7% | 21.0% | 22.3% | 31.2% | | -0.3% | 2.0% | 3.3% | 10.2% |
| EBITDA Margin | 5.6% | 4.0% | 6.2% | 17.6% | | 3.8% | 4.0% | 7.5% | 14.8% |
| Net Income Margin | 1.8% | 0.7% | 3.5% | 12.3% | | 3.0% | 3.7% | 7.8% | 11.8% |
Peers in Semiconductors
Below you can find Himax Technologies, Inc. benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 11.0% | 4.4% | -3.0% | 1.0% |
|---|
| Himax Technologies, Inc. ($HIMX) | - | -14.7% | 5.6% | -7.2% | 32.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 48.0% | 49.1% | 50.4% | 50.7% | 49.4% |
|---|
| Himax Technologies, Inc. ($HIMX) | 24.2% | 24.4% | 23.3% | 20.5% | 24.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| Himax Technologies, Inc. ($HIMX) | 9.1% | 3.6% | 3.3% | 0.9% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.2% | 3.7% | 4.0% |
|---|
| Himax Technologies, Inc. ($HIMX) | 1.0% | 5.8% | 10.5% | 14.9% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.4% | 3.2% | 3.0% | 3.8% | 5.3% |
|---|
| Himax Technologies, Inc. ($HIMX) | 9.4% | 1.3% | 0.6% | -2.9% | 9.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (31 companies) | 0.4x | 0.4x | 0.3x | 0.5x | 0.5x |
|---|
| Himax Technologies, Inc. ($HIMX) | -0.6x | 0.4x | 3.3x | 20.4x | -0.3x |
